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NITI Aayog on Mission mode to give facelift to agriculture

NITI Aayog has drawn a blue print to revive agriculture and enhance its contribution to national economy.

Niti Aayog has proposed a three-pronged strategy to usher in reforms in agriculture in the short run:

  • State-level agriculture marketing reform
  • Land leasing reform in line with model Land Lease Act of the Union
  • Forestry reforms for private land

The major issues addressed by NITI Aayog in these respects include:

  • Liberal contract farming
  • Direct purchase from farmers by private players
  • Direct sale by farmers to consumers
  • Single trader licence
  • Single point levy of taxes
  • Legalizing land lease
  • Retention of ownership right over land by landlords even if they are under lease
  • Giving legal right to tenants to have access to finance and subsidy on the basis of lease agreement
  • Taking fruits and vegetables out of the mandi laws
  • Liberalising norms governing forestry on private land

Suggestion to make it more affective

  1. Efficient agriculture marketing is not possible without commercialization of agriculture. This can be achieved by taking following steps:
  • Storage and retail chain should be developed from farmland to major cities.

This can be achieved through FDI in these sectors. FDI in these sectors can be made more attractive with their permission in multi-brand.

  • Financial inclusion
  • Village based value addition centres in the form of Food Processing Units.
  • Promotion of cottage and agro-allied industries with proper marketing chain

The last two will play complementary role in enhancing capital flow in the rural economy.

  1. The model Land leasing will not become effective unless security of ownership is legally assured by some central law.
  2. Crop-diversification according to afro-climate zones should be promoted to make agriculture more sustainable
  3. Promotion of work specific technology to minimize the impacts falling number of agriculture labour on the one hand and rising wage on the other
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